As the Labour government reaffirms its commitment to building 1.5m new homes in the next five years, the Build Chain examines how digital materials procurement can help achieve this target
Traditional construction practices are often bogged down by lengthy procurement processes, supply chain inefficiencies, and high costs, all of which contribute to delays in building new housing. Innovative solutions are urgently needed to accelerate construction timelines and meet the demand for new homes.
The new Labour government has reaffirmed its commitment to build 1.5m homes in England over the course of this parliament and is bringing back compulsory housebuilding targets. Whilst there is no single solution to increase housebuilding across the country, there are overlooked aspects of the process where small changes could make a significant difference.
Digital procurement platforms are emerging as a game-changer in this area. By streamlining the procurement process, enhancing supply chain reliability, and providing accurate data for better decision making, these platforms have the potential to significantly reduce the time and cost involved in building new homes., freeing up businesses to focus their energy on the other issues affecting housebuilding, such as the skills gap and planning process.
Faster materials procurement to enable housebuilding delivery
Introducing digital platforms into the materials procurement process accelerates construction timelines by streamlining the sourcing process – having the right materials, in the right place, at the right time, is essential for project timelines to remain on track.
Traditionally, procurement involves multiple phone calls, emails, and manual searches to find the right suppliers, which is time consuming and prone to delays.
Meanwhile, digital platforms can enable contractors to send out requests for quotes (RFQs) to a network of suppliers in just a few clicks, receiving multiple competitive quotes quickly. This efficient process eliminates the back-and-forth communication that typically slows down procurement.
Additionally, centralised communication and document management features ensure that all project related information is easily accessible and organised, reducing the likelihood of miscommunication and lost paperwork.
By automating tasks and providing real-time updates, digital procurement platforms help keep projects on schedule, allowing housebuilders to complete housing projects faster and more efficiently.
Sourcing materials at the right price in the right location
A significant advantage of using digital systems for procurement is their ability to enhance cost efficiency and improve budget management in construction projects. By leveraging real-time price benchmarking tools, contractors can compare quotes from multiple suppliers side-by-side. This pricing transparency helps identify the best deals and ensures that materials are procured at the lowest possible cost without compromising on quality.
Digital procurement also provides the ability to track and analyse procurement data to aid in forecasting and financial planning. With detailed records of past purchases, companies can make more informed decisions and negotiate better terms for future projects. A proactive approach to budget management reduces the risk of cost overruns and financial surprises, ensuring that projects stay within budget and enhancing overall profitability. Managing costs effectively and improving the profitability of housebuilding will play a key part accelerating the creation of new homes across the UK.
Enhancing supply chain reliability
Availability of key materials often hinders the progression of housebuilding projects. Ensuring a steady and predictable flow of materials is essential for maintaining the schedule and quality of housebuilding projects.
Digital procurement platforms play a pivotal role in enhancing supply chain reliability by offering advanced tools for efficient supplier management and transparent communication. These platforms allow contractors to connect with a wide network of verified suppliers, ensuring material availability even in times of high demand. Additionally, centralised communication features provide a transparent and documented trail of interactions, reducing the risk of miscommunications and errors.
By leveraging these digital tools, housebuilders can build stronger relationships with suppliers, negotiate better terms, and ensure that materials are delivered on time, helping to keep housebuilding projects on track.
Ready to adopt a digital materials procurement solution within your organisation? Try The Build Chain.
